In the realm of education financing, a new era has dawned—one where pursuing higher studies is not hindered by the complexities of collateral or the need for a co-applicant. This blog dives into the simplicity and empowerment offered by education loans that break away from conventional norms. While banks and NBFCs in India mandate collateral or cosigner international lenders can fund you with up to 100,000 USD without these two. Let’s understand how you can get an education loan without collateral and co applicant.
How does an education loan from international lenders work?
Education loan without collateral and co-applicant depends majorly on the target college, country, and student’s past academic records. All the lenders that provide education loans without collateral and co-applicant have a list of institutes and courses that are approved from their side for which they provide loans. The targetted institute and course can influence loan variables like loan amount, interest rate, repayment terms, and more. The main catch here is that all the international lenders provide you with funds in international currency, mainly in USD. As per the current scenario, 1 USD is equal to 83.349 INR. Can read more about currency trends here.
Different lenders for education loan without collateral and co-applicant
There are majorly 2 prominent lenders that can provide you with an education loan. They are –
- MPOWER Financing
- Prodigy Finance
Let’s learn about each of them one by one.
Student loans by MPOWER Financing
MPOWER Financing has been a public-benefit corporation in the marketplace since 2014 providing education loans to international students. MPOWER Financing offers education loans for two-year undergraduate and graduate courses at the colleges they have listed.
The list below shows MPOWER Financing education loan details:
- Maximum Loan Amount – Up to $100,000 USD, with an annual cap of $50,000 USD.
- Interest Rate –
- 99% for graduate programs.
- 99% for undergraduate programs.
- Interest Rate Type –
- Interest Rate Incentive – Enjoy a 0.25% reduction on auto-pay.
- Processing Fee – 5% applied to each disbursement.
- Processing Time – Expect a processing duration of 7-10 working days (with GyanDhan).
- Moratorium Period – Begins from the course years and extends for an additional 6 months.
- Margin Money – Nil, requiring no upfront contribution.
- Repayment Tenure – A comfortable 10-year repayment period.
Student loans by Prodigy Finance
Prodigy Finance is an international fin-tech platform based in the UK lending education loans for graduate courses at select universities or colleges. To apply for an education loan, a student must secure admission to any of the colleges listed by Prodigy Finance.
The following list presents the features of Prodigy Finance education loans –
- Maximum Loan Amount – Covers up to 100% of the study costs.
- Interest Rate – Ranges from 12% to 14%.
- Interest Rate Type – Floating.
- Admin Fee (Processing Fee) – 5% of the loan amount.
- Processing Time – Expedited processing of 7-10 working days, particularly with GyanDhan.
- Moratorium Period – Commences from the course years and extends for an additional 6 months.
- Margin Money – Nil, requiring no initial contribution.
- Repayment Tenure – Enjoy flexibility with repayment terms extending up to 20 years.
Required documents for education loan
Typically, your education loan application is backed up by documents on your and co-applicant identity and the collateral validity. Since international lenders do not require a co-applicant, the documents you need to submit include your eligibility.
The documents for education loans without collateral and co-applicant are listed below:
Documents required for MPOWER Financing student loans
- Resume or CV
- Home address proof
- Entrance test scores (GRE, GMAT, IELTS, TOEFL, etc.)
- Admission letter
- Previous academic records
- Estimated cost of attendance
- Passport
- Secondary photo ID from home country
- Supporting documents of external funding
- Visa documents
Documents required for Prodigy Finance student loans
- Student’s identity and address proof
- School admission proof
- Credit report
- Job offer (if employed)
- Savings or family contribution proof to fund studies (if any)
- Other sponsorship/ scholarship confirmation document
Benefits of an education loan without a co-applicant?
Several students are meritorious but don’t have the financial capability to go to an abroad university. Education loans have limited reach, and the need for collateral also inhibits students from realizing their potential and going for education abroad.
The loan processing is usually easy if you have collateral, but it becomes cumbersome when it comes to getting a loan without having a co-applicant or an asset to back your loan. Even for a co-applicant, the criteria are very stringent and have to be a close relative. There are no such hurdles for student loans with international lenders, plus there are some added advantages –
- Loans are sanctioned within a week.
- There is no need for a cosigner or collateral.
- There is minimal paperwork, and the documentation has to be uploaded online for the verification process.
- There is no need to visit the branches that help a lot of time and energy.
- The documents to be submitted are way less when compared to directly approaching the lenders for a loan.
- The loan amount is credited to the college, and this doesn’t put a burden on the students to manage huge sums of money in their bank accounts.
- The university profile plays a crucial role in deciding the interest rate and the loan amount for meritorious students.
- The loans are authorized through fully established legal channels that completely rule out the possibility of getting duped.
- You can also request a visa support document to obtain an I-20 from the university if needed.
Now that you know that there is a way to get an education loan without collateral and co-appincat you can plan your abroad education journey effectively. Make sure you understand the process and the terms and conditions of the loan before proceeding with international lenders. It is recommended that you look at the list of institutes and courses by these lenders so that you can target the university that aligns best with your and the lender’s criteria.
